Fulton Steams Ahead

Area West Of The Loop Goes From Nowhere To Neighborhood As Demand For City Living Remains Hot

April 20, 1997|By J. Linn Allen, Tribune Staff Writer.

CHICAGO — How do you make a ramshackle group of old factory buildings and warehouses into a neighborhood?

Just add water and plenty of dough.

Water, more specifically Chicago River water, is clearly a key reason that what developers and promoters have newly dubbed the Fulton River District is bidding to become Chicago's fastest-growing residential community.

Fulton Street, the spine of the area, dead-ends adjacent to the west bank of the river, at the point where the waterway divides into its north and south branches. Buildings near the water have unparalleled views, especially toward the east, where the river offers a panorama of some of the city's great architectural monuments.

"What attracted me was the view," said 26-year-old architect David Strong, who has put down a deposit on a $240,000 loft condo in the area with windows facing east. "It's as spectacular as any in the city, looking straight down the river."

While the water flows gently, the dough is at flood stage. Developers have already announced plans for some $200 million worth of projects, and that's without even counting ventures being contemplated by two of the city's biggest real estate movers, Habitat Co. chairman Daniel Levin and Larry Levy, head of the Levy Organization.

Levy already owns land along the river and Levin is negotiating for property across the river from the East Bank Club, which he built and owns.

If all the plans made public so far turn into reality, the neighborhood, bounded by Randolph, Kinzie and Halsted Streets and the west bank of the river, will get more than 1,000 units of housing and perhaps up to 2,000 residents in a year or two. Other developments still under study could bring hundreds more units.

For the city, that's an epic private building program, comparable in its way to the Levittowns and Park Forests of long-ago suburbia or the construction of behemoths such as Presidential Towers.

But unlike those historic projects, it is taking place with little public fanfare and no public money. This new town is springing up not as a result of government policy but because the economy is good and downtown Chicago is a draw for young people with good jobs.

"I'm young and I don't have all the responsibilities of a family and all that, so I want to live in the city and take advantage of the opportunities here," said Strong, who plans to move to his new condo with Heather Wasilowski in the spring of next year.

Just a couple of years ago, the area was little more than a seedy blot on the horizon looking west from the Wells Street bridge, dominated by a cold smokestack from the old, disused Chicago & North Western railroad power station.

To the south and west, not far from Presidential Towers on Madison Street, loft conversions were proceeding apace. River North, on the east bank of the river, was also seeing a residential boom. In between, development around Fulton Street was perhaps inevitable.

"Those watching city development right now aren't surprised," said Greg Longhini, chief spokesman for the city planning department. "It's clear that over the last couple of years there has been an enormous amount of interest and investment in central area properties for residential development.

"That area is right around the bend of the river and it has wonderful old buildings and vacant land that's quite affordable compared to other places in the central area," he added.

The district also is just a quick walk across a bridge to the Loop or River North. It has a newly remodeled "L" station on Clinton Street and is a comfortable stroll from the lakefront.

But there were few, if any, people living there in early 1995 when Michael Lerner paid $2 million for an ancient industrial building that was being used as a nightclub at 606 W. Fulton St.

Lerner, president of MCZ Development, is a carpenter turned developer who has grown his business into one of Chicago's top loft converters, with 518 units sold for a sales volume of $78 million last year.

He and partner Bernard Leviton, a Lincoln Park developer, had a vision for the area as a hip new neighborhood, full of young people and shops and trendy eateries. They quickly started turning the six-story brick structure into the 112-unit China Club Lofts, a $20 million project named after the nightclub.

At first Lerner wasn't sure anyone would move into an undeveloped area.

"When we opened we were concerned about being remote, but it started filling in very quickly," he said.

Early success with China Club Lofts, which is sold out save for a few of the pricier units, led to a full slate of plans for projects nearby. They include:

- The Clinton Street Lofts--a 165-unit redevelopment (already under way) of three adjoining buildings into a condo project at 216 N. Clinton St.